What's a Company Beneficial Owner? and why should i submit their details in my account?

In the context of legal person, a beneficial owner means any natural person who ultimately owns or controls a corporate entity and/or the natural person on whose behalf a transaction is being conducted. It also includes the natural person who exercises ultimate effective control over a legal person. For the purpose of our eKYC process and to comply with regulatory requirements, we need to verify the identity of the natural person who ultimately has a controlling ownership interest in a legal person, including shareholders with equity interest of more than 25% in a corporate entity or with capital contribution and/or voting rights of more than 25% in the case of a limited liability partnership, including either direct or indirect ownership. If no single shareholder owns over 25%, senior management with strategic control may be considered a beneficial owner.

Reasons to Submit Beneficial Owner Details:

1. Regulatory Compliance: Many jurisdictions require companies to disclose beneficial owners to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This helps authorities track and prevent illegal activities.

2. Transparency: Disclosing beneficial owners promotes transparency in business operations, helping to prevent fraud and corruption by making it clear who is ultimately responsible for the company.

3. Risk Management: Knowing the beneficial owners helps companies and financial institutions assess the risk associated with doing business with a particular entity. It ensures that they are dealing with legitimate and responsible parties.

Submitting the details of beneficial owners in your account ensures compliance with legal requirements, supports transparency and ethical business practices, and helps manage risk effectively.